On September 25th 2024, consumer-focused private equity investment firm L Catterton acquired a majority stake in Solidcore, a US-based pilates workout provider. While exact terms were not disclosed, it is estimated that the deal values Solidcore between $600 million and $700 million, with the portfolio company being acquired through L Catterton’s Flagship fund. L Catterton purchased their stake in the business from fellow investors VMG Partners, Kohlberg & Company, and Peterson Partners.
Founded in 1989, consumer buyout firm L Catterton has made over 250 high profile investments across the consumer space, currently managing approximately $34 billion in assets under management with a joint ownership structure with luxury giant LVMH. They hold prominence in the consumer private equity space, and drive value creation through leveraging their extensive knowledge in the field. The acquisition of Solidcore strategically aligns with some of L Catterton’s previous investments, such as fitness club Equinox, exercise apparatus manufacturer Peloton and barre studio Pure Barre to name a few. In fact, earlier this week, L Catterton also announced a $200 million funding round in Egym, reflecting their current sectoral interest in the fitness and wellness subvertical.
Solidcore is a pilates studio operator, providing full body workouts that target strength training through 50-minute sessions on a reformer machine called ‘Sweatlana’. Reformer pilates proves to be an exciting new trend in the wellness and fitness space, and Solidcore is the first of its kind that offers pilates sessions through the lens of strength training. For example, wellness conglomerate Everyone Active, which caters to over 3.2 million clients monthly, has also recently announced the launch of their first reformer studio. L Catterton has noticed that “consumers understand that movement is medicine”, hence why companies like Solidcore prove to be exciting growth prospects. They believe that there is a great opportunity for Solidcore’s domestic and international expansion, which will only grow as more consumers discover the long-term benefits of such a program. Solidcore has had a transformative growth story to date, currently with 130 locations across 25 US states with significant presence on the East Coast. Solidcore’s CEO has expressed interest to reach 250 global studios within three to five years, and the newfound partnership with L Catterton and their deep industry experience in scaling high-growth enterprises will help to facilitate this target.
The sentiments regarding this leveraged buyout have been positive, citing L Catterton’s prior experience within the fitness and wellness space to help Solidcore achieve their strategic targets. It will be important to observe how L Catterton will choose to navigate the upcoming macroeconomic environment, yet their experience within the consumer discretionary space proves to be reassuring for investors and portfolio companies alike.
Written by: Siddh Patel
Sources: L Catterton Press, PR Newswire, Reuters
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